Governor Katie Hobbs Applauds Federal Court Decision that Prioritizes Patient Safety and Access to Care in Steward Health Care Bankruptcy Case

Phoenix, AZ - Following court proceedings yesterday regarding the Steward Health Care bankruptcy case, Governor Katie Hobbs is applauding the decision and commends the parties for working diligently to find a solution that prioritizes patient safety and access to quality care.

In May, Steward Health Care, which operates four hospitals in the state and many others across the country, filed for bankruptcy and has since created significant challenges and uncertainty for patient care and healthcare employees. They had demonstrated a lack of good faith in identifying a solution that was in the best interest of patient care, but today's court decision creates a path forward. HonorHealth, a trusted nonprofit healthcare system in Arizona, will immediately assume daily operational control to serve the Mountain Vista Medical Center, St. Luke's Hospital in Tempe, Florence Hospital in Florence, and multiple affiliated outpatient physician practices, bringing a much needed resolution as they continue to work towards full ownership.

"Arizonans' access to high quality and affordable healthcare must not come at the expense of corporate greed and mismanagement," said Governor Katie Hobbs. "I have been working tirelessly to protect vulnerable Arizonans and ensure any agreement reached prioritized the health and safety of patients who were failed by Steward Health Care. It was well past time that Steward Health Care stepped aside and for a qualified healthcare provider to assume operations of these facilities without further delay. Yesterday's actions are critical to ensure that patients in communities across Arizona continue to have access to quality health care. I remain committed to working with HonorHealth to assist in a swift transition, and our primary goal remains minimizing disruption to care. I am proud of my team that leapt into action to protect patients at St. Luke's who were suffering from Steward's mismanagement. I continue to closely monitor the future of the St. Luke's behavioral health facility, and will work to ensure that every Arizonan can access the care that they need."

The Governor's Office has played an active role in ensuring that Arizonans continue to have access to high quality care and directing executive agencies to effectively support HonorHealth in this transition.